Unit Global Entrepreneurship - Express Limited - Example

EXPRESS LIMITEDBUSINESS PLAN 24th October, 2014 To whom it may concern: We are pleased to submit our Business Plan for Express Limited. At this time, we are seeking investors to start up our business in Adelaide area of South Australia, and Melbourne providing high quality bikes at a competitive price. Express Ltd aims at attaining assorted farsighted objectives. Firstly, Express Ltd aspires to attain a competitive edge in the Australian Bike market through the adoption of internet technology. Secondly, Express Ltd will do everything possible to maximize revenues and to enhance customer loyalty and retention in the highly competitive bike market. Finally yet importantly, Express Ltd is going to apply energies to be the market leader in the Bike market and to liaise with key stakeholders. We therefore, look forward to doing business with you. Sincerely, Enclosure: Express Limited 1.0 Executive Summary This study sought to analyze the business plan for Express Limited. In so doing, it defined the following main objectives, namely: to achieve a competitive edge in the Bike market through the adoption of internet technology, to maximize revenues, to enhance customer loyalty and retention in the face of global competition, to be the market leader in the Bike market and to liaise with key stakeholders in the Bike industry in an effort to operate effectively. The proposed Express Limited at first is to be located in Adelaide and Melbourne Cities in Australia. The company projects that it will require two thousand square feet in both cities to run its business in an effective manner. It is hoped that Express Limited will implement the set objective by pursuing a niche marketing strategy. Thus, the firm will tap the underutilized resources by segmenting the overall market, setting clear goals and objectives and positioning for the competitive advantage. In addition, the company will realize the set objective through value addition, boosting value addition through awareness, branding, promotions and campaigns. The company shall divide its target market into local and international tourists. Express Limited believes in a strong leadership team that will facilitate the attainment of the set objectives. The Chief Executive officer will therefore, provide efficient management, and also, determine the company’s vision. The senior leadership team will also consist of two directors who will assist in the long-term growth of the company. The company will strive to motivate its employees in order for them to carry out their duties enthusiastically and effectively. The financial section of the plan outlines a projected financial outlook on the first three years of Express Limited. TABLE OF CONTENTS 1.0 Executive Summary 3 TABLE OF CONTENTS 4 2.0 Introduction 6 2.1 Vision Statement 6 2.2 Mission Statement 6 2.3 Objectives 6 3.0 Industry Analysis 8 3.1 Trends and characteristics 8 3.2 Gaps in the market 9 4.0 The Market 10 4.1 Market Trends 10 4.2 Profile of Competitors 10 4.3 Market description 11 4.4 Production 12 4.5 Uniqueness 13 4.6 Customer segments 13 5.0 Marketing Strategies (4Ps) and Differentiation 15 5.1 Products 15 5.2 Price 16 5.3 Distribution (place) 16 5.4 Promotion 17 5.5 Differentiation 17 6.0 The Organization 18 6.1 Management Team 18 6.1.1 Chief Executive Officer/ President 19 6.1.2 Sales and Marketing Director 19 6.1.3 Human Resource Manager 20 6.1.4 Sales and Marketing Executives 20 7.0 THE FINANCIALS 21 7.1 Start-up costs 21 7.2 Projection of a 3 year financial Statement 22 7.2.1 Balance Sheet 22 7.2.2 Sales Revenue and Costs 23 8. 0 Risk Assessment 26 9.0 Conclusion 30 Reference list 31 APPENDICES 32 2.0 Introduction Express Limited will be involved in the retailing of bikes in Australia. Express Limited aims at introducing unique bikes that would capture the hearts and wallets of Australian consumers. The company prides herself in the fact that it will be the market leader in the provision of bikes across Australia. Like many other startup businesses, Express Limited will incur various initial obligations and costs (Lynn, 2007). First, the company will need to obtain a trading license to allow Express Limited provide the envisaged services legally. To avoid conflict with others in the industry, the company also needs to register the name “Express Limited” with the Registrar of Companies in the country. 2.1 Vision Statement To be the market leader in the provision of bikes in Australia and the world at large. 2.2 Mission Statement The company envisages becoming the market leader in the Australian bike industry by offering clients quality, yet affordable bikes. In addition, this company aims to carry a reputation in the marketplace for delivering its product in a timely manner. To fulfill these goals, Express Limited will need to have adequate capital, able and efficient management coupled with efficient and effective facilities to carry out the office operations. 2.3 Objectives Express Limited aims at achieving a competitive edge in the bike industry via the adoption of internet technology in promoting its products and services. With increased use of social media primarily Facebook and Twitter in recent times, Express Ltd hopes to influence consumer’s decision-making process to purchase the products (Boone, 2011). Additionally, Express Limited aims at maximizing revenues, to enhance customer loyalty and retention in the face of global competition. In addition, Express Limited hopes to become the market leader in the distribution of bikes across Australia and world at large. 3.0 Industry Analysis 3.1 Trends and characteristics In the past few years, Bikes retail business in Australia has recorded a considerable growth in spite of the recent global financial crisis that affected many countries across the word. According to Hitt (2010), this industry has been projected to increase by 4 per cent between 2013 and 2020. He has pointed out that this has been made possible by the existence of a government sector that is efficient, a competitive business sector, and a labor market that is flexible. The government has set forth policies that ensure that Bikes industry is expanding. This industry has also played a prominent role in the creation of jobs, regional development, and export earnings. Bike industry contributes a lot to the Gross Domestic Product of Australia. Boone (2011), points out that the principal indicators show that this industry employed in excess of two hundred thousand people in 2010 where more than seventy billion Australian dollars were paid as monthly salaries or wages. In Australia, bike retail outlets are mainly concentrated in the major towns, in uptowns and the industrial areas. Bikes and bike components which include derailleur, driventrains and brakes, are commonly manufactured in Asia and the Far East. Shimoni is the largest manufacturer of bikes and their components. Bicycle Industries Australia (BIA) plays a prominent role of fostering the interests of the bike industry. The organization promotes ethical business practices and sound methods of conducting the bike trade. The institution voices out issues affecting the industry, which includes regulation and taxation. BIA also manages the Australian Cycling promotion Fund. The other advocacy body is the Australian bike expo, which normally conduct expo events on an annual basis. The event attracts exhibitors countrywide and also from other countries. This is meant to promote the bike industry in a practical manner by stakeholders (Australian Bicycle Council, 2010). 3.2 Gaps in the market In spite of its continued growth, the bike industry has faced several challenges that are hindering the realization of its full potential. One of the greatest challenges facing the bike industry in Australia is the importation of cheap and low quality Bike models from other countries especially China (Boone 2011). Express Limited has observed that most of her competitors have not engaged in the export business. As Boone (2011), argues, Bikes business in Australia is a significant business. In order to move a step further ahead of them, Express Limited will begin shipping her products outside of Australia. Some of the identified areas where bikes’ business is doing well are in the African and the European countries. With branches in these countries, the company will be guaranteed of continued growth, even if the sales in one or more regions stagnate. This will go a long way in making Express Limited a respected brand across the countries it will be operating. 4.0 The Market According to Dahlen (2010), following the global economic crisis of the 2008 to 2009, various facets of the Australian economy were greatly affected. Dahlen (2010) points out that although the economic recession is over; there are companies that have never regained their performance prior to the global economic crisis. However, the bike industry has managed to withstand these challenges and is doing pretty well in the economy. Dahlen (2010) argues that that constant improvement of this industry gives hope to investors that their investments will perform well in spite of the fore mentioned challenges. It is for this reason that Express Limited has decided to venture in this business. The government has also placed adequate measures that aim to boost the investor confidence in the country. Such measures include putting hefty taxes on imported bikes. This move ensures that there are equal playing fields amongst companies dealing with bikes. 4.1 Market Trends General trends in bikes production and sales include the following: Greater awareness of safe bikes hence an overall increased demand for the best quality. Young people increasingly own bikes hence changing trends of bikes designs. 4.2 Profile of Competitors Bikes dealers in Australia have been increasing by the day. Therefore, Express Ltd will face stiff competitions from renowned dealers including cyclingdeal, Bike Force Australia, Avanti plus Navajo and True local. In the face of globalization, bike dealers across Australia have embarked on franchising their businesses with a view of appealing their customers. In addition, many others across Australia have overwhelmingly institutionalized the culture of innovation to meet customer’s needs. For instance, Dahlen (2010) has observed that companies have opened websites where customers can make orders and pay for them. He says that it is the obligation of the company to make arrangements how the purchased goods will reach the customer in the soonest time possible. According to him, this idea is meant to boost customers’ confidence in such a company and hence such a customer will find it hard to move to another company to buy the bikes. The concept of doing business online has also helped customers avoid carrying cash at hand. Clients have an opportunity of viewing the prices of Bikes they want before making a payment. This gives them a chance to compare the price of one outlet with another in order to make an informed decision. Furthermore, while purchasing Bikes online, a customer will have the chance of choosing the type of Bikes he or she wants. Such a customer will also explore other range of services the company deals or is selling in the premises. In order to gain a considerable market share, the company intends to sell its products at a relatively low price compared to her rivals. In addition, there will be a special offer given on the first one hundred customers. 4.3 Market description The exact market that we intend to penetrate is Adelaide city and Melbourne. Adelaide city is one of the most explored parts of South Australia. According to Kao (2010), the city is considered as one of the most livable cities across Australia because of its various heritage as well as environmental sites. Among the impressing outlooks in Adelaide City include beaches, Barossa and Coonawarra valleys, Adelaide Hills among many others. The city is also densely populated, and this provides a ready market for Bikes business. The proximity to Kangaroo Island also makes Adelaide be home to thousands of visitors from various countries across the globe who could be potential clients. Therefore, tourism in the country can also boost the company’s bike business. On the other hand, Melbourne, being the capital city of Victoria State provides yet another big market for the Express Limited. This city has been ranked second in terms of population in Australia. It is for this reason that Express Limited hopes to open an outlet there to tap the market for this growing population. The presence of Port Philip provides yet another opportunity to export goods in an easier way. Unlike other towns and cities in the interior, setting a business premises in Melbourne helps the entrepreneur cut down on transport costs to the harbor. 4.4 Production Express Limited products will be manufactured in Adelaide industrial area. The company hopes to contract a number of suppliers who will be bringing raw materials to the company at a competitive rate. These suppliers are very important in line of production, and therefore, the company hopes to pay them than others to make sure that they supply high quality raw materials. The company hopes to use the most efficient way during the production process to minimize air pollution. This will go a long way in maintaining a clean environment for people to live and work in (Kao 2010). To remain competitive in the future, the company aims at setting up an efficient supply chain management system. This will be possible through the creation or building of trust between the company and the core suppliers. Having strategic win- win alliances with suppliers and involving them in the initial design processes makes them feel a part and parcel of the company and enhances quality production. Application of the Web or the internet in the supply chain management is also vital in enhancing the bonds with the suppliers as well as in cost cutting. Unnecessary or avoidable paper costs can be avoided through the use of the internet for instance in the invoice tracking. 4.5 Uniqueness With the use latest technology available in the market, Express Limited hopes to have unique bikes in the market. Coupled with research and development, the company promises to have bikes with the highest quality and low prices in the Australian market. The manufactured bikes will bear the name and the logo of Express Limited. However, every model will have its unique name. 4.6 Customer segments The target market for Express Limited shall be divided into local and international. The local market shall consist of the residents of Adelaide City and Melbourne city. The local market will further be divided into young and aged family groups. The demographics of Adelaide and Melbourne Cities provide a firm base of why they are promising markets for our company. According to the Australian Bureau of Statistics (ABS), there are about one million, two hundred thousand residents in Adelaide City and close to five million residents in Melbourne City. In order to target the international market and boost export earnings, the company shall zero in on various regional market blocks such as Africa, Asia, Europe and the United States of America. The following are the three distinct target groups for our products; first, the company will focus on the young but financially stable Australians. These group of people love to have latest trends of bikes. Therefore, Express Limited will try to stock enough stocks to meet the demands of this group of people. These young people are known to care about the quality of the products and therefore, bikes of high quality will be readily available for them. To make sure that they keep on coming to Express Limited, the company aims to offer after sale service to them. This will involve offering free puncture repair service to all the bikes bought from the company. Secondly, Express Limited will also zero in on Australian families that travel around the country especially during vacation and over the weekends. During vacations some families opt to use their bikes to traverse different parts of the country. As a result, these people require bikes with tires that can withstand high temperatures when on the road. It is for this reason that Express Limited hopes to have high quality bikes designed for long distance riding. According to Dahlen (2010), driving across the Australian desert is a very challenging experience owing to the high temperatures, especially during the day. As a result, he says that the rider is required to make sure that his bike is in good shape to avoid instances of deflation which is the worst nightmare for any rider especially in a remote area such as the desert. Thirdly, Express Limited will focus on the overseas markets. It is important to note that other companies from other countries have also invested abroad. Therefore, Express Limited will endeavor to export high quality yet low priced bikes in order to compete effectively in the overseas markets. 5.0 Marketing Strategies (4Ps) and Differentiation In marketing the products, Express Limited will observe the following guidelines in order to have a stake in the market:- 5.1 Products Express Limited shall sell various types of bikes. In addition, the company will be offering after sale services to its clients across the country. The company is going to exploit the opportunity and offer professional services and consultations to bike owners on how best to maintain their bikes. Additional products and services will include assistance in the replacement of worn out or punctured wheels. The company will strive to offer unique services to its clients so that it can retain them while attracting new ones. This will be achieved through innovation of numerous products and services, such as free after sale service to suit the different consumer segments and to market them through the most effective approaches. Initially, the company will focus on inexpensive products and services with desirable qualities. This will be attractive to Australian customers, who are likely to form the first bunch of clients. With time, Express Limited hopes to introduce a wide range of products and services in order to suit clients seeking for quality. 5.2 Price Express Limited will strive to maintain a competitive pricing policy by keeping its prices slightly below that of rival firms. However, as the company builds its reputation, it expects to be able to charge comparable rates to other companies through offering premium products. It is expected that the quality of the products will not be compromised with the reduced prices. The company will at all times try and keep with the economic trends of the day. This will make sure the consumers who are the main drivers of the business are not exploited by any means. We will also communicate this with our customers to make sure they are aware of our existing prices. This will not only build their confidence in the company, but also create a long term relationship with them. 5.3 Distribution (place) Palmer (2012) defined distribution as the physical movement of products from the origin to destination. Thus, distribution management involves shipping, warehousing, inventory, and amortization. In the past few years, the concept of physical distribution has emerged as a distinct, identifiable function of management. In terms of transport, Australia is one of the country’s that have good transport network across the globe. Therefore, Express Ltd will not face major challenges in its operations in Adelaide and Melbourne cities. The company will develop a website that will form a major distribution channel. The website will also provide a platform where customers can place an order and pay for their products. This will reduce instances of carrying bulk cash to purchase goods. According to Amiya (2005), in the contemporary world, e commerce is fast gaining momentum and more people have found it to be a reliable mode of making transactions. Therefore, the company will try and encourage the use of e commerce to make payment from customers easier and secure. 5.4 Promotion After companies have developed the products, they must inform potential customers about the products, in order to cut a niche in the market. Express Ltd will advertise its bikes using the following tools; advertising, sales promotion, personal selling among others. 5.5 Differentiation Market positioning is imperative for the company in creating a niche in the bikes market in Adelaide City as well as the Melbourne City. This can be realized through branding of the products, campaigns and promotions for Express Limited products as well as ensuring consistency in the look and quality of the products. The product should also be easy to identify from other brands and products. In so doing, the consumers will be made aware of the products and its superiority over the other brands and products. The branding process will ensure the product’s uniqueness and align consumer’s expectation with the product. 6.0 The Organization Express Limited will practice efficient and effective hiring and training procedures that will facilitate the attainment of the set objectives. Thus, Express Limited will encompass the right staff with the right leadership skills to make sure that the company achieves success and continued growth over the years it will be in operation. The care and compassion during the selection of candidates will provide this company success. 6.1 Management Team Our management team will have the following members to achieve our plan and objectives. These will be men and women who are experts in their fields of specialization with many years of experience. They include the Chief executive Officer who will be the head of the company, Sales and Marketing Director and the Human Resource Manager. There will be other employees who will work below these senior members of staff. Express Limited Organization Chart 6.1.1 Chief Executive Officer/ President The CEO will clarify the Express Limited strategic intent by setting a clear vision (Blackwell, 2011). He or she will be required to build a strong organization; that is come up with a common mission that drives both management and employees. In addition, the CEO will be expected to shape the organizational culture; that is, build values and believes that will shape the organization positively. The CEO will liaise with the executive and the marketing director, in order to enhance growth and profitability. 6.1.2 Sales and Marketing Director The Sales and Marketing Director will be entrusted with the role of ensuring that the company’s products are properly advertised. As such, this individual should have a marketing background, be social and outgoing. In addition, the applicant must have superb communication skills. He is also expected to have a good background of Adelaide City and Melbourne city, in order to assist in identifying the right group of clients. The marketing director will conduct frequent meetings with the CEO and the Executive Manager, in order to discuss how Express Limited stands in the market. 6.1.3 Human Resource Manager This individual will be in charge of managing the welfare of the employees in the company. These are all key responsibilities that will ensure Express Limited run smoothly and error free. As such, the candidate will be expected to have managerial background, as well as good communication skills. Having a background in the automobile will be a plus, but not necessary. 6.1.4 Sales and Marketing Executives This group of people will be the main ambassadors of the company in the field. They will play an important role in making sure that the company is marketed out there to the potential clients. They will be required to have prior knowledge in the sales and marketing field. This will help the company spend less time training them on what is expected of them once they move to market. Though not a necessity, experience in bike dealings will be an added advantage to the candidates. 6.2 Other employees Such people include the accountants, the receptionists, office messengers and the customer service agents. Although these people are not directly involved in the management of the company, they play a critical role in ensuring that company policies are implemented to the letter. The above employees will need to have prior experience in their relevant field before taking up their positions in Express Limited. 7.0 THE FINANCIALS 7.1 Start-up costs The Express Limited is easy to start because the initial investment required is low. The startup cost of the Express Limited is $18,200.   Startup Costs Breakdown STARTUP COSTS Fixed Assets 3,000 Insurance 1,500 Inventory 3000 License Fee 500 Marketing Expenses 1000 Rent 3,000 Store Setup 1,000 Stationery 200 Improvements 3,000 Others 2,000 Total 18,200 7.2 Projection of a 3 year financial Statement 7.2.1 Balance Sheet Express Limited BALANCE SHEET ASSETS 2015 2016 2017 Current Assets Cash and equivalent 8,500 10,200 12,240 Accounts Receivable 1,500 1,575 1,654 Inventory 9,000 12,600 17,640 Prepaid Expense 1,500 1,500 1,500 Total Current Assets 20,500 24,375 31,534 Fixed Assets Equipment 3,000 3,600 4320 Accumulated depreciation (300) (900) (1,400) Net property and equipment 2,700 2,700 2,920 TOTAL ASSETS 23,200 27,075 34,354 LIABILITIES AND OWNERS’ EQUITY Current Liabilities Accounts payable 750 788 827 Salary and Wages Payable 1,500 1,575 1,654 Payroll Tax Payable 115 120 127 Sale Tax Payable 550 578 606 Total Current Liabilities 2,915 3,060 3,214 Owners’ Equity Owners’ investment 20,285 20,285 20,285 Retained earnings 0 3,729 10,955 Total Owners’ Equity 20,285 24,015 31,240 TOTAL LIAB & OWNERS’ EQUITY 23,200 27,075 34,454 7.2.2 Sales Revenue and Costs Express Limited first year sales revenue is 160,000 USD or 13,333 USD per month. However, the sales revenue is projected to increase by 40% and 30 % respectively. The sales will be low at the beginning due to the fact that it is a start up business. As more people in Adelaide City and Melbourne City know the business, the sales revenue will increase until the third year when it stagnates. Income Statement EXPRESS LIMITED INCOME STATEMENT 2015 2016 2017 REVENUE Sales Revenue 160,000 224,000 291,200 Cost of Sales 96,000 134,400 174,720 Gross Margin 64,000 89,600 116480 Gross Margin % 40% 40% 40% EXPENSES Advertising 11,000 11,000 11,000 Depreciation 300 600 500 Insurance 1,500 1,575 1,654 Interest Expense 200 210 221 License Fee 500 500 500 Office supplies 600 630 662 Payroll Taxes 1,836 2,570 3,342 Rent 18,000 18,540 19,096 Salaries and wages 24,000 33,600 43,680 Telephone 1,200 1,260 1,260 Store setup 1,000 500 500 Improvements 3,000 1,200 1,260 Total Expenses 63,136 72,185 83,711 Net Profit 864 17,415 32,769 The statement of Cash Flow EXPRESS LIMITED STATEMENT OF CASH FLOW 2015 2016 2017 OPERATING ACTIVITIES Net Income 864 17,415 32,769 Depreciation 300 600 500 Net Cash from Operating Activities 1,164 18,015 33,269 INVESTING ACTIVITIES Purchase of property and equipment 3000 600 720 Net Cash Flow from Investing Activities (3000) (600) (720) FINANCING ACTIVITIES Paid-in- Capital 20,285 0 0 Dividends to the owners 864 13,685 21,814 Net Cash Flow from Financing Activities 19, 241 (13,685) (21,814) NET INCREASE IN CASH 17,585 3,729 10,735 Break-Even Point of Sales The break-even sales point indicates when the sales profit margin can cover the fixed costs during the operation period. The three year break-even sales for Express Limited are $65,250, $62,013 and 63,673. Break Even Sales Break Even Point Sales = Fixed Costs / Contribution Margin Ratio Break Even Sales Year 2015 26,100/40 % = $ 65, 250 Year 2016 24,805/40 % = $ 62, 013 Year 2017 25, 469/ 40 % = $ 63, 673 8. 0 Risk Assessment Hillson (2009) noted that in every undertaking, there are many uncertainties that hinder the attainment of the set objectives. Project risk analysis thus assesses the uncertainties that can jeopardize an undertaking. Some of the main aspects that are included in a project risk analysis are cost, market segments, resource analysis among others (Rasmussen, Eichorn & Prince, 2003). The proposal to commit funds in a bike business is a viable one. However, there are many uncertainties associated with this venture and hence the need for risk assessment. The following is a risk table for Express Limited; . Types of Risk Internal Risk Rating External Risk Rating Ill defined project Scope 2, 5 (7) Unable to gain funding 3, 5 (8) Poor motivation of staff members 2, 4 (6) Unable to gain approval 3, 5 (8) A high turnover of the key staff members 3, 3 (6) Non-availability of raw materials 3, 3 (6) Poor communication 2, 3 (5) Competitive action from competitors 3, 2 (5) Lack of use of the facilities 3, 4 (7) Poor student reaction 3, 4 (7) The inappropriate use of resources 2, 3 (5) Unable to obtain suitable contractors 2, 4 (6) Lack of team commitment 2, 3 (5) Unrealistic specifications 1, 3 (4) Unanticipated changes to scope 4, 4 (8) Students unrest 2, 3 (5) Project scope risks 2, 4 (6) Solvency of suppliers 3, 3 (6) Budget cutbacks 2, 4 (6) Poor consumer response to advertising 3, 3 (6) Accuracy of market research 3, 4 (7) Acts of God 2, 3(5) Availability of staff 2, 3 (5) Crime and insecurity 3, 3(6) Leadership & Organizational failures 2.5(5) Inflation 3, 4(7) Resource failures 3, 4(7) Escalation of prices 3, 2(5) Wastage 3, 2(5) Technology change 3, 4(7) Lack of project vision 3, 4 (7) Loosing key project members 3, 4(7) Poor pricing policy 3, 2(5) Non availability of competent employees 3, 3(6) Poor book keeping 3,3(6) Time overrun 3,4(7) Inadequate tax records 3,2(5) Accidents 3,3(6) Poor advertising 3,3(6) Unacceptable business practices 3,4(7) Failure to take part in community affairs 3,2(5) Poor allocation of tasks 3,4(7) Unrealistic project plans 3,2(5) Damage due to negligence 3,3(6) Lack of delegation of authority 3,3(6) Conflicts among employees 5,3(8) Staff turnover 4,4(8) Lack of internal control systems 3,3(6) The above table assesses both the internal and external risks that can impact on Express Ltd. Risks that were deemed to have greater consequences were marked in red in the above table. A risk matrix was created in order to determine the likelihood of each risk happening. We decided to assign different rate on each risk depending on the risk tolerance level. In addition, we decided to range values from two to ten as shown in the risk matrix below. Risks that fall into the lower range were rated two while those that were deemed to pose greatest consequences were rated ten. Risk Assessment Matrix Insignificant Minor Moderate Major Catastrophic 1 2 3 4 5 Almost Certain 5 6 7 8 9 10 Likely 4 5 6 7 8 9 Possible 3 4 5 6 7 8 Unlikely 2 3 4 5 6 7 Rare 1 2 3 4 5 6 9.0 Conclusion The proposed Express Limited has been subjected to the most rigorous analysis, and it can be concluded that it can be viable under all realistic scenarios. This plan demonstrates that the venture is a solid new business based on real and exciting opportunities. From the market analysis, it is clear that the company has a chance to achieve and maintain a competitive edge through cost leadership, product, promotion, distribution and pricing strategies. Reference list Amiya, K 2005, Managing Business Interfaces: Marketing and Engineering Issues in the Supply chain and internet domains, Springer, New York. Australian Bicycle Council. 2010. Gearing up for active and sustainable communities: National Cycling Strategy 2011-2016. Australia: Austroads. Blackwell, E 2011, How to Prepare a Business Plan: Create Your Strategy; Forecast Your Finances, Produce that Persuasive plan, Kogan Page limited, London. Boone, L 2011. Contemporary Marketing, 2013 Update. Ed: 15. Cengage Learning, London. Dahlen, M 2010. Marketing Communications: A Brand Narrative Approach. John Wiley & Sons, Hoboken. Hillson, D.2009.Managing Risk in Projects. Farnham: Gower Publishing, Ltd. Hitt, M 2010. Strategic Management: Competitiveness & Globalization, Concepts: Ed: 9. ‘ Cengage Learning, London. Kao, R 2010. Sustainable Economy: Corporate, Social and Environmental Responsibility. World Scientific, London. Lynn, J 2007. Start Your Own Business On EBay. Ed: 2. Entrepreneur Press, California. Palmer, A. 2012. Introduction to Marketing: Theory and Practice. Ed: 3. Oxford: Oxford University Press. Rasmussen, N.H, Eichorn, C.J & Prince, T.2003.Process Improvement for Effective Budgeting and Financial Reporting .Hoboken: John Wiley & Sons. APPENDICES Appendix 1 CEO’S Resume Personal Details Name: Date of birth: Email: Mobile No: Sex: Nationality: Career Objectives Leaning towards efficiency and effectiveness Education Course: Bachelor of Commerce (Finance) Institution: Leeds University Year of Graduation: 2013 Experience St. Peters Hall Resident (May 2009- present) Training on time management, psychology and diversity issues Served as a peer leader to incoming students Logistics controller Leadership I have undertaken a leadership development program course under the sponsorship of Leadership International Skills Excellent communication skills, flexible, quick learner, reliable, time management and computer literate. Appendix 2 A summarized Internal Risk Plan Risk Event Probability Consequences Responsibility Prevention Ill defined project Scope Unlikely Major-This would adversely affect the project CEO Ensure that the scope is well defined Poor motivation of staff members Possible Terrible-This may jeopardize the project Human Resource Manager Reward staff members to perform their duties enthusiastically High turnover of key staff members Possible Terrible-This may jeopardize the project Human Resource Manager Reward staff members to feel motivated Poor communication Possible Moderate/Major – could hinder goal attainment Organizational members/ manager Encourage openness Inappropriate use of resources Possible Terrible –This may hinder project from being accomplished on time Management team Ensure proper utilization of all resources that is finance ,time ,space among others Lack of team commitment Possible Terrible –This may hinder project from being accomplished on time Management team Encourage team work and participation during key decision making Project scope risks Likely Terrible/Moderate –Could cause huge losses Organizational members Take appropriate steps to ,minimize the impact of the risks Probability scale: 1-Rare, 2-Unlikely, 3-Possible, 4-Likely, 5-Almost Certain Appendix 3: A summarized external risk plan A Summarized External Risk Plan Risk Event Probability Consequences Responsibility Prevention Non-availability of raw materials Possible Terrible-This may jeopardize the project Management team Outsourcing Competitive action from competitors Possible Moderate/Major – Could result to low revenues Senior leadership team Strive to create loyal customers by providing value for money Probability scale: 1-Rare, 2-Unlikely, 3-Possible, 4-Likely, 5-Almost Certain Appendix 4: World Bicycle and Automobile production Obtained from: World watch: Bike Europe: Global Insight Read More